Microsoft Stock Expected to Swing 6% Ahead of Earnings Report

Microsoft's earnings report on Wednesday is expected to have a significant impact on its stock price. Recent options pricing suggests traders expect the company's shares to swing up to 6% in either direction by the end of the week.

This would translate to a rally as high as $417, or a slip as low as $368, from Monday's level around $392. Microsoft has been under pressure lately due to concerns about AI disruption and its own spending on AI development.

The software giant is scheduled to report earnings after the closing bell on Wednesday, with traders anticipating a big move from its stock. Analysts are overwhelmingly bullish on Microsoft, with 11 of 12 analysts tracking Visible Alpha considering it a 'buy', and one neutral rating. Their mean price target of $549 would suggest 40% upside from the current level.

Microsoft's revenue is projected to come in at $87.71 billion for the fiscal fourth quarter, up nearly 15% year-over-year, with its Intelligent Cloud segment seen growing 28% to $38.24 billion.